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Bi-partisan Sponsorship
Taxes & Budget

SB157

To Amend The Law Concerning Benefits Under The State Public Employee Retirement Systems.

Failed

Last Action (May 5, 2025): Died in House Committee at Sine Die adjournment.

Sponsors

AI-Generated Summary

Senate Bill 157 authorizes various Arkansas public employee retirement systems to offer pension-owned life insurance as a survivor's benefit for their members. The affected systems include the Arkansas Public Employees' Retirement System, State Highway Employees' Retirement System, State Police Retirement System, Arkansas Teacher Retirement System, Arkansas Judicial Retirement System, and the Arkansas Local Police and Fire Retirement System. Participation in offering this benefit is discretionary, meaning no system is mandated to provide it. If a system chooses to offer the benefit, the life insurance payment to a member's beneficiary must be a set amount. Any remaining balance from the policy is intended to be used to reduce the respective retirement system's unfunded liabilities. Boards of trustees for each system are authorized to promulgate rules to implement these new provisions.

Potential Impact Analysis

Who Might Benefit?

The primary beneficiaries are the members of the various state retirement systems, who may be granted an additional life insurance benefit to pass on to their chosen survivors. The retirement systems themselves also benefit, as the legislation stipulates that any surplus funds from these life insurance policies are to be directed toward reducing the systems' unfunded liabilities, potentially improving the long-term financial health of the pension funds.

Who Might Suffer?

The bill could potentially negatively impact the financial stability or administrative resources of the individual retirement systems if the costs of managing and funding these new insurance programs exceed the benefits or the generated surpluses. Additionally, if the systems choose to implement these benefits, there could be long-term budget implications for the state or participating local governments if the insurance offerings become an unforeseen fiscal burden. Members might also be impacted if the implementation of these benefits results in lower returns or changes to existing retirement structures.

Vote Records

Third Reading

April 3, 2025
Yea: 32 Nay: 1 NV: 0 Absent: 2 Passed
View individual votes (35)
Legislator Party Chamber Vote
Jane English Republican Senate Yea
Jonathan Dismang Republican Senate Yea
Greg Leding Democrat Senate Yea
Missy Irvin Republican Senate Yea
Bryan King Republican Senate Yea
Kim Hammer Republican Senate Yea
Stephanie Flowers Democrat Senate Absent
Frederick Love Democrat Senate Yea
Terry Rice Republican Senate Yea
Reginald Murdock Democrat Senate Yea
Gary Stubblefield Republican Senate Yea
Jim Dotson Republican Senate Yea
John Payton Republican Senate Yea
Alan Clark Republican Senate Yea
Ronald Caldwell Republican Senate Yea
Bart Hester Republican Senate Yea
Jimmy Hickey Republican Senate Yea
Dan Sullivan Republican Senate Yea
David Wallace Republican Senate Absent
Blake Johnson Republican Senate Yea
Justin Boyd Republican Senate Yea
Clarke Tucker Democrat Senate Yea
Scott Flippo Republican Senate Yea
Clint Penzo Republican Senate Yea
Mark Johnson Republican Senate Yea
Ricky Hill Republican Senate Yea
Jamie Scott Democrat Senate Yea
Breanne Davis Republican Senate Yea
Ben Gilmore Republican Senate Yea
Joshua Bryant Republican Senate Yea
Matt McKee Republican Senate Nay
Jim Petty Republican Senate Yea
Steve Crowell Republican Senate Yea
Tyler Dees Republican Senate Yea
Matt Stone Republican Senate Yea
Read Full Bill on arkleg.state.ar.us